NVIDIA Corporation (NVDA)
Financial leverage ratio
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Jan 28, 2024 | Oct 31, 2023 | Oct 29, 2023 | Jul 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 29, 2023 | Oct 31, 2022 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Apr 30, 2022 | Jan 31, 2022 | Jan 30, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 111,601,000 | 96,013,000 | 85,227,000 | 77,072,000 | 65,728,000 | 65,728,000 | 54,148,000 | 54,148,000 | 49,555,000 | 49,555,000 | 44,460,000 | 41,182,000 | 41,182,000 | 40,488,000 | 40,488,000 | 43,476,000 | 45,212,000 | 45,212,000 | 44,187,000 | 44,187,000 |
| Total stockholders’ equity | US$ in thousands | 79,327,000 | 65,899,000 | 58,157,000 | 49,142,000 | 42,978,000 | 42,978,000 | 33,265,000 | 33,265,000 | 27,501,000 | 27,501,000 | 24,520,000 | 22,101,000 | 22,101,000 | 21,349,000 | 21,349,000 | 23,851,000 | 26,320,000 | 26,320,000 | 26,612,000 | 26,612,000 |
| Financial leverage ratio | 1.41 | 1.46 | 1.47 | 1.57 | 1.53 | 1.53 | 1.63 | 1.63 | 1.80 | 1.80 | 1.81 | 1.86 | 1.86 | 1.90 | 1.90 | 1.82 | 1.72 | 1.72 | 1.66 | 1.66 |
January 31, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $111,601,000K ÷ $79,327,000K
= 1.41
The financial leverage ratio of NVIDIA Corporation has fluctuated over the analyzed period, ranging from 1.41 to 1.90. This ratio indicates the proportion of the company's total assets that are financed by debt as opposed to equity. A higher financial leverage ratio suggests higher financial risk due to increased reliance on debt financing.
Between January 2022 and October 2023, the financial leverage ratio increased steadily from 1.66 to 1.90, indicating a higher level of debt relative to equity in the company's capital structure. However, from October 2023 to January 2025, the ratio declined consistently, reaching a low of 1.41. This decrease suggests a shift towards a lower reliance on debt financing and potentially a stronger equity position.
Overall, monitoring the financial leverage ratio of NVIDIA Corporation is crucial for assessing the company's capital structure and risk profile. fluctuations may indicate changes in the company's financing strategy and risk exposure.
Peer comparison
Jan 31, 2025